That has to qualify as a huge opening for a restaurant chain with just 63 locations internationally and only 53 in the United States. The company calls its stores fine casual, a step up we suppose from the fast-casual space.
Shake Shack has big plans. It wants to open at least 10 company-operated stores a year in the United States, eventually reaching a total of 450 company-operated U.S. stores. It’s not often that you see a new company with what amounts to a 40-year growth plan.
The company sold 5 million shares of Class A common stock, and more than 6 million shares changed hands in the first hour of trading. Joint bookrunners for the offering include J.P. Morgan, Morgan Stanley, Barclays, Goldman Sachs and Jefferies. Co-managers are William Blair and Stifel. The underwriters have a 30-day option on an additional 750,000 shares.
Whenever we see an enormous first-day jump like this we have to wonder how the underwriters failed to see the demand. Sure they want to see that their big clients make a profit on an IPO, but what about the company? Investors should have been happy with a solid 25% first-day gain and the company could have pocketed more cash.
At the $21 IPO price, the company’s market cap totaled around $745 million and the company raised about $105 million.
Shares traded at $47.32 about an hour after the opening bell Friday, up about 127%. The stock hit a high of $52.50 before falling back.
ALSO READ: Box Inc. and Its Investors Hit IPO Jackpot
The Average American Is Losing Momentum On Their Savings Every Day (Sponsor)
If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4%1 today. Checking accounts are even worse.
But there is good news. To win qualified customers, some accounts are paying more than 7x the national average. That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn a $200 bonus and up to 7X the national average with qualifying deposits. Terms apply. Member, FDIC.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.